SINGAPORE (May 16): Frasers Property and Singapore’s sovereign wealth fund GIC are partnering with co-working space provider JustCo to jointly invest US$177 million ($236 million) to develop a co-working space platform across Asia.

The three partners’ joint investment will enable JustCo to build on its presence in Southeast Asia and expand into other Asian markets such as Greater China, Korea, Japan, Australia and India.

The investment will also support the ramping up technology solutions and enhance service offerings to facilitate collaboration and networking opportunities among its growing base of community members.

Through its wholly-owned subsidiary Frasers Property Ventures I, Frasers Property has entered into an agreement to subscribe for up to 13.2% of the issued and paid up capital of JustGroup Holdings.

At the same time, via another wholly-owned subsidiary, Frasers Property Ventures II, Frasers Property has entered into a joint venture arrangement with a wholly owned subsidiary of GIC and JustGroup.

Frasers Property will subscribe for ordinary and preference shares representing up to approximately 15.3% of the issued and paid-up share capital in the joint venture company.

In total, Frasers Property will invest up to US$60 million for the subscriptions in JustGroup and the joint venture.

“We view real estate as a service offering that goes beyond brick and mortar. The combination of thoughtful design, curated service offerings and smart-office technology, can transform office buildings into inspiring, collaborative workspaces that enhance our workplace communities. Our partnership with GIC and JustCo exemplifies our belief that ‘experience matters’,” says Panote Sirivadhanabhakdi, group chief executive officer of Frasers Property.

“The co-working movement embraces the flexibility of the sharing economy and is fast changing the way office space is designed, leased, used and operated. As a long-term value investor, we are attracted by the sector’s growth potential in the long run and believe that the fragmented nature of the sector presents opportunities for consolidation,” says Lee Kok Sun, chief investment officer of GIC Real Estate.

“We are extremely humbled to have found the right investors who share the same vision and purpose. This round of investment will help us enhance and redefine the flexible workspace experience through multi-geographical footprints,’ says Kong Wan Sing, founder and CEO at JustCo.

Shares of Frasers Property closed 1 cent lower at $1.94 on Tuesday.